Labour Force

The employment generation is determined by how fully and productively a country utilizes the material, technological, organizational and human resources at its disposal. More productive societies employ its resources efficiently and produce higher quality goods and services that have greater demand in the market. This leads to more employment opportunities in such societies, higher demand for their goods and services increase the purchasing power. This increased purchasing power then acts as an additional stimulus to the creation of new demand in the market and hence more employment opportunities.

7.1 Current Employment Scenario 2012-13
During 2012-13 the population of Pakistan is estimated at 184.35 million growing at an annual growth rate of 2%. Of the total population, 60.52 million (32.1%) are in labour force. Labour Force Survey data shows that total labour force participation (LFP) rate increased slightly from 32% in 2nd quarter of 2010-11 to 32.1% during 3rd quarter 2012-131. The male LFP rate has increased from 48.6% in 2010-11 to 49.1% in 2012-13, while female LFP rate has decreased slightly from 14.8% to 14.3% for the same period. The rural LFP rate for the same period has decreased from 33.7% to 33.3% whereas the LFP rate for urban areas has increased from 28.8% to 29.6%.
1 Comparison in this section is between the 3rd quarter of 2010-11 to 3rd quarter of 2012-13.

Table 7.1: Labour Force Participation Rates (%) Area

LFS 2010-11

LFS 2012-13

Total

Male

Female

Total

Male

Female

Pakistan

32.0

48.6

14.8

32.1

49.1

14.3

Rural

33.7

48.2

18.5

33.3

48.3

17.8

Urban

28.8

49.3

7.3

29.6

50.6

7.2

[1] “District Population Profile: Sindh, Operationalizing and Interpreting Population Census for Planning. Multidonor support Unit, Islamabad, March 2002.

[2] “District Population Profile: Sindh, Operationalizing and Interpreting Population Census for Planning. Multidonor support Unit, Islamabad, March 2002.

[3] “District Population Profile: Sindh, Operationalizing and Interpreting Population Census for Planning. Multidonor support Unit, Islamabad, March 2002.

[4] “District Population Profile: Sindh, Operationalizing and Interpreting Population Census for Planning. Multidonor support Unit, Islamabad, March 2002.

[5] “A Study of Effects of Interplay of Formal and Customary Laws on Women in Sindh.” Vol. V. Raasta Development Consultants, Karachi and The Royal Netherlands Embassy, Islamabad, 2002.Pg 13.

[6] “A Study of Effects of Interplay of Formal and Customary Laws on Women in Sindh.” Vol. V. Raasta Development Consultants, Karachi and The Royal Netherlands Embassy, Islamabad, 2002.Pg 13.

Women Employment

Women Employment
The low visibility of women in employment sector in Pakistan is usually attributed to cultural factors, discrimination in the labour market and employment in the unorganized sectors. Mostly, women are concentrated in sectors known for low level of productivity with unstable income flow and low job security in view of their dual role at home and workplace. Organized services sector is mostly government service, and provides employment to a small proportion of women. The rate of unemployment among women is higher than that of men, both in rural and urban areas primarily due to socio-cultural norms and low level of education in women. With the increase in educational levels of women, faster growth of women’s employment is observed in all sectors including white-collar jobs. Government machinery, non-governmental organizations and progressive political parties need to focus on the education of women to enhance the status of women in Pakistan.
In Pakistan female population constitutes 48.8% of total population but their share in labour market is not in proportion to their share in total population. Only 13.8 million (23%) female are in the labour force as compared to 45.5 million (77%) male. In terms of employment only 12.6 million (22.5%) female are employed as compared to 43.2 million (77.5%) million male. Unemployed labour force is 3.5 million, while female unemployed are 1.2 million which constitute 35% of total unemployed labour force. Female unemployment rate is 8.9%. Share of women in wage employment in non-agriculture sector is only 10.4%. As far overall employment is concerned only 0.02 million are employers. Self-employed, unpaid family helpers and employees are 1.9 million, 7.9 million and 2.6 million respectively. In other words, women employers are 0.14%. While self-employed, unpaid family helpers and employees are 15.5%, 63.4%, 20.9% respectively, indicating that women employment status as employers and self employed is very low.
The low visibility of women in the employment sector in Pakistan is also attributed to factor such as low level of educating and skills. Entrepreneurial education with skill development may solve the problem of female wage employment and unpaid family helpers.

Minimum Wage
The government has announced a raise in the minimum wages of labour from Rs.7,000 per month to Rs. 8,000 per month. The degree to which this minimum can support an acceptable living standard, needs to be further examined and minimum wage needs to be enhanced further. Furthermore, the minimum wage fixation would be subjected to a tripartite deliberation process at regular intervals to protect the living standards of the workers and wider disposal of growth benefits. Implementation lapses will be focused upon through streamlining the inspection system. In view of the
Skill Development and Employment
Annual Plan 2013-14 71
commitment of the newly elected government to gradually enhance the minimum wage to Rs. 15,000 per month, it is hoped that as priorities are set and resources available, the minimum wage will improve.
7.3.4 Overseas Employment
Government of Pakistan is making every effort to boost overseas employment. It is estimated that at least 8 million Pakistanis are working abroad playing important role in economic wellbeing of the country. In this regards, MoUs have been signed with a number of labour importing countries. A separate Overseas Pakistani Division has been established to facilitate overseas workers. The number of emigrant increased from 0.36 million in 2010-11 to 0.45 million in 2011-12.
7.3.5 Employment Generation Strategy
The employment generation strategy relies either upon employment expansion strategy or employment activation strategy. The employment expansion strategy focuses on sustainable growth and development through increasing productivity, supporting innovative entrepreneurship, private sector development, increasing energy generation to meet demand, youth entrepreneurship, gender equality, connectivity, developing the cities as engine of growth, promoting small scale industries, and improve youth and community. While employment activation strategy emphasizes to improve labour skills endowment in general, paying particular attention to identifying specific skill gaps and taking effective steps to fill them. National Vocational Technological Training Commission (NAVTTC) can help to improve standards of technical education of the country and skill development council can help to meet the diversified training needs of the industrial and commercial sector of their geographical areas. The employment expansion policies are helpful for generating demand for labour while employment activation policies are main source of improving the supply of labour force.

SOCIO ECONOMIC CONTEXT

Youth population is estimated at 55.7 million, of which 16.3 million are in the category of labour force.

Out of total youth labour force, 14.6 million are employed while remaining 1.7 million are unemployed.

Implying 10.3% youth unemployment rate which is higher than the national unemployment rate of 6%.

As far employment status of youth is concerned, only 0.04 million are employers while self-employed, unpaid family helpers and employees are 2.6, 6.3 and 5.7 million respectively.

In other words, youth employers are 0.27%, while self-employed, unpaid family helpers and employees are 17.8%, 43.2%, 38.8% respectively, indicating that youth employment status as employers and self employed is very low.

This can be attributed due to lack of entrepreneurship education to become employers of self-employed.

Socio-Economic Context of Women in Sindh:

According to the 1998 census, the population of Sindh is almost 30 million, which has grown by 58 percent since the last census in 1981. The male female ratio is 111:100 Women constitute 47 percent of Sindh’s population.[1]

The infant mortality rate for women is 105 as compared to men, which is 93 per 1000 live births. In Sindh,[2] the average age at marriage is 21.6 years for women and 25.7 years for men. The estimated crude birth rate is 33 per 1000 and 28 percent constitute mothers with more than 5 births. The completed fertility size is 6.0 births, by women reaching age 45-49. more than 4,000 mothers die every year due to pregnancy related issues. The overall literacy ratio in Sindh is 47 percent, which is higher than the national ratio of 45 percent. But at the same time female literacy ratio is only 36 percent against the national average of 33 percent. Literacy levels for rural women are only 12 percent.

Literacy Rate of Women in Sindh (percentage):

Year

Women

1975

20.0

1980

21.5

1985

22.4

1990

23.7

1995

25.8

Table Source: Social Policy and Development Centre, “Social Development in Pakistan, Annual Review, 1998, pg 130

Social Development Indicators for Men and Women in Sindh:

Indicator

Women

Men

Literacy Rate

34.8%

58.5%

Gross Primary Enrolment

35.2%

58.2%

Combined Primary and Secondary

18.1%

29.9%

Urban Literacy Rate

56.7%

69.4%

Available # of Primary Schools

21,992

32,909

Maternal Mortality

8/1,000 live births

----

Infant Mortality Rate

105/1,000 live births

93/1,000 live births

Labor Force Participation

6.9%

67%

Top Managerial Jobs

0.23%

29.48%

Source: Social Development in Pakistan Annual Review 2001, Ministry of Education, and Development Statistics of Sindh, Sindh BOS 2002

Labour Force Participation Rates (%)

Area

LFS 2010-11

LFS 2012-13

Total

Male

Female

Total

Male

Female

Pakistan

32.0

48.6

14.8

32.1

49.1

14.3

Rural

33.7

48.2

18.5

33.3

48.3

17.8

Urban

28.8

49.3

7.3

29.6

50.6

7.2

Sindh has much more equal distribution of over 6 million women living in the urban areas and just 7 million women living in rural areas. Of these approximately 3 million women are over the age of eighteen, residing in both urban and rural regions.